I can see why there's a perceived competition between Sydney and Melbourne, they're both great cities so it's a tough call as to who is better. After three separate visits, and one week of staying here my vote goes to Melbourne. I just found the city more real - i don't know how else to describe it. I wasn't going to get thrown out of a pub in Melbourne for making too much noise - in fact i saw some great live pub bands whose only problem was that they were too loud...I'm getting old.
It's not all pubs and clubs either, Melbourne has some great theatres, cinemas, parks and museums. It's laid out nicely around the Yarra river, it's easy to get around by walking or on the trams and St Kilda and the beach is only a short journey away. So it's lacking the icons of a opera house and a bridge, but it makes up for it in the number of cool buildings, sports facilities/stadiums and unpretensious vibe.
Melbourne also has a very, very large casino; and this is not a good thing. My obsessive tendencies, love of playing fruit machines and gambling (which is why i rarely do either), unfair odds, lack of money...oh dear. i don't think i ever went to bed before 2am, and if it had been Vegas i don't think I'd have bothered with bed. Bizarrely, luckily and unusually i end up with over $1000 in profit, enough to live on for the next two weeks...no more gambling for me...i need to count my chickens, or is it sheep and get some sleep.